Correlation Between Shanghai Metersbonwe and Aofu Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Aofu Environmental Technology, you can compare the effects of market volatilities on Shanghai Metersbonwe and Aofu Environmental and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shanghai Metersbonwe with a short position of Aofu Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Aofu Environmental.
Diversification Opportunities for Shanghai Metersbonwe and Aofu Environmental
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Aofu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc and Aofu Environmental Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aofu Environmental and Shanghai Metersbonwe is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shanghai Metersbonwe FashionAccessories are associated (or correlated) with Aofu Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aofu Environmental has no effect on the direction of Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Aofu Environmental go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Aofu Environmental
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 1.16 times more return on investment than Aofu Environmental. However, Shanghai Metersbonwe is 1.16 times more volatile than Aofu Environmental Technology. It trades about 0.19 of its potential returns per unit of risk. Aofu Environmental Technology is currently generating about 0.08 per unit of risk. If you would invest 120.00 in Shanghai Metersbonwe FashionAccessories on September 12, 2024 and sell it today you would earn a total of 133.00 from holding Shanghai Metersbonwe FashionAccessories or generate 110.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Aofu Environmental Technology
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Aofu Environmental |
Shanghai Metersbonwe and Aofu Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Aofu Environmental
The main advantage of trading using opposite Shanghai Metersbonwe and Aofu Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe position performs unexpectedly, Aofu Environmental can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aofu Environmental will offset losses from the drop in Aofu Environmental's long position.| Shanghai Metersbonwe vs. Lutian Machinery Co | Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. Bank of China | Shanghai Metersbonwe vs. Gansu Jiu Steel |
| Aofu Environmental vs. Zijin Mining Group | Aofu Environmental vs. Wanhua Chemical Group | Aofu Environmental vs. Baoshan Iron Steel | Aofu Environmental vs. Rongsheng Petrochemical Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world |